Council declines to approve new rental licensing requirements following public opposition
BY MICHELLE KEY
PUBLISHER
OPELIKA — The Opelika City Council failed to approve an ordinance Tuesday, Nov. 3, that would have established new business licensing and taxation requirements for owners of residential, commercial and short-term rental properties, as well as self-service storage facilities operating within the city.
The proposed ordinance, which received its second reading Tuesday, would have amended Chapter 14 of the city’s code of ordinances to establish separate licensing and taxation structures for different types of rental properties. The requirements would have taken effect Feb. 1, 2027.
Under the proposal, owners of residential rental properties, including houses, apartments, condominiums and other dwellings, would have been required to obtain a city business license and pay an annual license tax equal to 1% of gross rental receipts. The minimum annual license tax would have been $100 per property owner or business entity.
The same 1% rate and $100 minimum would have applied to short-term rental properties, defined as dwellings or portions of dwellings rented for fewer than 30 consecutive days.
Short-term rental operators also would have been subject to the city’s existing lodging tax rate and required to submit monthly reports documenting rental income and lodging taxes collected.
Several residents addressed the council during Tuesday’s meeting, expressing concerns about the proposed requirements.
Opelika resident Jason McGee urged the council to consider an exemption or alternative licensing structure for homeowners who rent their primary residences for 14 days or fewer annually. McGee said he plans to rent his home for approximately 12 nights each year during Auburn football weekends, generating an estimated $7,200 in supplemental income.
“I’d like to ask the council to consider making a distinction between commercial short-term rental operations and homeowners who occasionally make their primary residences available to visitors,” McGee said.
He emphasized that he supports reasonable regulations but believes occasional rentals should be treated differently from commercial rental operations.
“The city has an opportunity to protect its neighborhoods and address legitimate concerns about commercial rental operations without unnecessarily burdening homeowners who are simply trying to make ends meet,” he said. “We’re not we’re not trying to have a rental empire. We’re just trying to make ends meet.”
For commercial rental properties, the proposed ordinance would have established an annual business license tax of one-fortieth of 1% of gross rental receipts, with a minimum fee of $100 per property owner or legal business entity.
Josh Poole, an Auburn resident whose wife, Amanda Tucker-Poole, owns Celtic Traditions School of Irish Dance on Frederick Road in Opelika, also spoke against the ordinance, expressing concern that the additional tax on commercial rental properties could ultimately increase costs for small businesses.
“Small businesses already operate on very thin margins, and any undue increase in rent or taxation is a difficult burden to bear,” Poole said.
He expressed concern that commercial property owners could pass the additional expense along to their tenants, potentially encouraging some businesses to relocate to neighboring communities.
“I would ultimately urge you to look at your citizens and your small property owners and business owners and think about them, and at least postpone this decision until the greater economic impact can be understood,” he said.
Poole also questioned the timing of the vote on Election Day and called for additional public discussion and a study of the ordinance’s potential economic effects.
The proposed ordinance would have required self-service storage facilities to obtain a business license at a flat annual rate of $1,000 per facility, regardless of gross receipts.
It also would have established additional reporting requirements for rental property owners and management companies. Residential and commercial property owners would have been required to submit detailed listings of their rental properties, including property addresses and gross rental income for each location.
Owners or managers of multifamily residential properties generating more than $1 million in annual gross receipts from a single parcel would have been required to submit quarterly reports and tax payments rather than annual payments.
Although property management companies could have submitted applications and payments on behalf of property owners, the proposal would have maintained that property owners remained responsible for compliance and payment of applicable taxes.
Short-term rental operators also would have been required to meet applicable fire, housing and building safety codes. Property owners designating another person or company to manage their short-term rentals would have been required to provide appropriate authorization, and managers would have needed applicable business licenses.
The proposed ordinance included penalties and interest for delinquent payments, including a 15% penalty for the first period of delinquency, an additional 15% for extended delinquency and interest of 1% per month.
Annual rental business licenses generally would have been due Jan. 1 and become delinquent Feb. 15. Existing lawful rental operators would have been given a 30-day period beginning Feb. 1, 2027, to obtain the required licenses.
The proposal had generated public discussion during the council’s Oct. 20 meeting, when several residents addressed council members about the proposed licensing requirements.
At that meeting, Nelson Marsh spoke in support of the ordinance, while Emily Key, Richard Oden and Patsy White expressed opposition.
The ordinance was introduced during the Oct. 20 meeting before returning for its second reading and unsuccessful vote Nov. 3. The nay votes were from Ward 2, 3 and 5 council members with the yay votes coming from Ward 1 and 4.
Council approves changes to dog tethering ordinance
In other business, the council approved amendments to the city’s animal control ordinance addressing the tethering and outdoor confinement of dogs.
The changes establish requirements for tethering equipment, outdoor enclosures and shelters intended to protect dogs from unsafe conditions.
Under the ordinance, tethering equipment must allow dogs adequate movement and continuous access to food, water and shelter. The ordinance also addresses the use of collars and chains, requiring equipment designed to reduce the risk of injury or entanglement.
Outdoor enclosures must provide adequate space and secure fencing, while shelters must offer protection from weather conditions, proper ventilation and sufficient room for animals to move comfortably.
The ordinance also establishes enforcement procedures and penalties for violations, with increasing misdemeanor classifications for repeated offenses.
Employee clinic agreement fails
The council also rejected a proposed employee clinic services agreement with Symbol Health Solutions.
The motion failed with three council members voting against it, one voting in favor and one abstaining.
Council considers Andrews Road rezoning
Following a public hearing, the council introduced an ordinance to rezone approximately 18.9 acres in the 3000 block of Andrews Road from M-2 industrial to C-3 general commercial with a Gateway Corridor-Primary designation.
The proposed rezoning received its first reading during Tuesday’s meeting.
Mayor Eddie Smith recognized members of Opelika’s inaugural Youth Council during the meeting.
The mayor also recognized the city’s 2026 firefighters, police officers and dispatcher of the year.
Consent agenda
The council approved the following items on its consent agenda:
- Approved a temporary street closure for the Victorian Front Porch Walking Tour on Dec. 12.
- Awarded a contract to Apalachee Pole Co. Inc. for the purchase of southern yellow pine utility poles for Opelika Power Services on an as-needed basis.
- Approved dedicated internet services from AT&T at a cost of approximately $3,806 per month.
- Approved the purchase of ammunition for the Opelika Police Department at a cost of $55,121.
- Approved the purchase of a Flygt submersible pump for the Public Works Department at a cost of $70,845.
- Approved an amendment to the city’s annual excess loss insurance contract with Lloyd’s.
- Authorized a grant application to the Alabama Department of Transportation for improvements to Alabama highways 51 and 169 and Lafayette Parkway.
- Approved a bulletproof vest grant application for the Opelika Police Department.
- Approved a homeless shelter services agreement with Valley Rescue Mission.
- Approved a memorandum of understanding with the Lee County Sheriff’s Office for cooperative radio system operations.
- Approved a right-of-way encroachment agreement with the National Village Property Owners Association.
- Authorized the city clerk to seek recovery of unclaimed property from the state of Alabama.
- Designated bank depositories for city accounts.
- Approved expense reports from various city departments.
- Established compensation for the presiding municipal judge and assistant city prosecutor.
- Reappointed John Wesley McCollum Jr. as municipal judge.
- Reappointed Harold W. Morris as public defender for Opelika Municipal Court.
- Approved a $35,000 fiscal 2027 appropriation to the Boys and Girls Clubs of East Alabama.
- Approved a $5,000 appropriation to the Domestic Violence Intervention Center.
- Approved a $5,000 appropriation to East Alabama Services for the Elderly.
- Approved a $30,000 appropriation to Keep Opelika Beautiful.
- Approved a $4,000 appropriation to the Lee County Literacy Coalition.
- Approved a $50,000 appropriation to O Grows.
- Approved a $5,000 appropriation to Opelika Community Theatre.
- Approved a $1,000 appropriation to The Arc of the Chattahoochee Valley.
- Approved a $5,000 appropriation to The Curtis House.
- Approved a $15,000 appropriation to Thriving Hearts of East Alabama.
- Approved a $5,000 appropriation to Worthy2.
- Reappointed Jeff Neely to the Lee-Russell Council of Governments Metropolitan Planning Organization Citizen Advisory Committee for a term ending Nov. 5, 2028.
- The council also held nominations and a ballot vote to fill two vacancies on the Opelika Library Board. Jessica Nicholson and Aaron Ritchie were appointed to the board.
